Posts tagged ‘alumina’

China has long been the epicenter of the iron ore market. Australian miners’ medium grade iron ore fines are the foundation of China’s sinter feed, with other regions having to compete for space in the mix.

Radical changes in procurement preferences in China this year, though, have pushed down the price of Australia-origin ores compared to Brazil’s, potentially opening up an arbitrage opportunity for Australian material to other regions.

Since January S&P Global Platts quality differentials for the gangue elements such as alumina, silica and phosphorous have evolved to reflect changing market fundamentals.

The alumina differential soared 100% from $1.50/dmt in January 2018 to $3.00/dmt in May 2018. Phosphorous has also seen large increases from a steady $1.30/dmt throughout the last quarter of 2017 to $2.50/dmt on May 18, where it has remained.